ic (why) ci

A company sells 2 products - A (costing 1,000 bucks) and B (costing 10,000 bucks); both at the same profit margin.
Now any economic book would tell you that it's all about the volume and numbers. The company sells A in much larger numbers as compared to the product.

But there is one market which defies all the rules of economics, comes up with its own chutzpah and makes the economists eat their words. India i.e.

The company being discussed is ICICI Lombard and the products: A - 2 wheeler insurance, B - 4 wheeler insurance.
The number of passenger cars sold in India in FY'06 was 2.4 lakh. Well, Hero Honda alone sold that much bikes in the month of August'06 :-O
Yet, almost all the 4 wheeler owners get their vehicle insured and a minuscule percentage of 2 wheeler owner theirs'.
Which directly means that companies like ICICI Lombard are not getting the expected revenue from the later.
Which indirectly means bad service and almost nil enthusiasm among the agents for pushing 2 wheeler insurance (These people are ready to collect the cheque for 4 wheeler insurance from your choice of place/time but wouldn't except cash for 2 wheelers' at their office)

And this isn't the lone case. If asked about ICICI bank, I could go on and on...

So much for the reforms, privatisation, demand and supply shaping the economy.
(My local govt owned insurance agent would blatantly demand for a Rs.50 note but at least get the job done)

p.s. wrote a 'disgusting' mail to all the icicilombard.com mail ids i could gather (including that of the operation head, mkting head, and other damn heads..suckers.. :P